I thought I'd start a thread for people to share their thoughts on the one or two shares they think look great value at the moment. I'm partly doing this for selfish reasons as I am struggling to find shares I am interested in right now! I've entitled this 'Bargain Basement Shares' because my strategy is tilted towards value, but I'd also be interested to hear of other stock ideas.

To get the ball rolling I think Norcros (LON:NXR) and Lavendon (LON:LVD) look great value right now. Paul Scott has written about them in more detail but in short:

Lavendon (LON:LVD) recently updated the market with its half-year results and it is looking pretty good (profits up 13%), with overseas earnings and a weak pound also benefiting the company right now. I am currently expecting EPS of around 20p for the year which puts it on a P/E of just 6.5 - remarkable for an international company that seems to be growing steadily in a niche sector. The last time it was this low was in 2012 - why?!?! Perhaps it is being discounted because of concerns about the construction sector and a possible global recession but it is also trading more cheaply than its peers and there are no signs the business is slowing down yet. It's yield is around 4% and the interim dividend was raised by 18% 'reflecting good performance and the Board's confidence in future prospects'.

With Norcros (LON:NXR) I currently expect EPS of around 28p for the current financial year putting it on a P/E of about 5.6 at the time of writing. Its South African business is growing nicely despite concerns about the South African economy and its acquisitions seem to be doing pretty well. The risk here is that this is a very cyclical company (bathroom taps, showers etc) but the market seems to be pricing in a very substantial fall in profit which seems totally unjustified to me! The dividend yield is 4% while we wait.

It would be great to hear what shares you currently think look good value.

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